LNG-fired power projects under Vietnam's PDP VIII must operate in 2028

The Vietnamese government has asked relevant agencies to speed up the progress of LNG-fired power projects towards completion and operation in 2028, earlier than the deadline specified in the power development plan VIII (PDP VIII).

In a recent announcement on amending the PDP VIII, the government noted that for projects with problems, the Ministry of Industry and Trade must help to solve them or report to higher authorities for solutions.

Regarding those already having investors, including LNG Quang Ninh, LNG Thai Binh, LNG Quang Trach II, phase 1 of LNG Hai Lang, LNG Son My I and LNG Son My II, and LNG O Mon II III IV, the trade ministry must speed up the progress to operate them in 2028. 2028 is two years earlier than the deadline in PDP VIII.

For project without investors yet such as LNG Quynh Lap, LNG Nghi Son, and LNG Ca Na, relevant agencies must accelerate the progress to complete them in Q1/2028 at the latest.

The government also requested that under-construction power projects must complete the construction and enter operation in 2025. These include the Nhon Trach 3 and Nhon Trach 4 LNG-fired power, Nam Cum 4 hydropower, expanded Hoa Binh hydropower, Vung Ang II thermal power, and Quang Trach I thermal power plants.

In addition, it ordered amendments to PDP VIII must be approved on March 20 at the latest. Electricity sources as baseload of the system must exceed 50% of the total in the amended PDP VIII, with the increase in LNG-fired power making up for the decrease in coal-fired power, the government added.

Vietnam currently has only one operational LNG-fired power project - the Nhon Trach 3 and Nhon Trach 4 in the southern province of Dong Nai.

In its draft amendment to the power development plan VIII (PDP VIII), the Ministry of Industry and Trade said that Vietnam can import LNG from major exporters such as Australia, the United States, and Qatar. In the long term, the country can consider LNG imports from Russia and other Middle East nations.

According to the draft amendment to PDP VIII, the electricity sector is set to consume 10-11.8 billion cubic meters of imported LNG yearly until 2030, then 9-11 billion cubic meters yearly by 2045.